California Real Estate Near Peak Prices NAR Reports What Next

Dated: 12/20/2013

Views: 2456

This is a very encouraging report (link below) from the Association of Realtors. 23 states are within 10 percent of their peak prices. Some folks may want to say "here we go again". However this time it is very different.  The risky loans that were available back during the 2003-2007 time frame are no longer available, such as neg am, 103% financing, and "pick a payment" to name a few. 

FHA is available however the revised minimum is 3.5 percent down and conditions are now very strict. Loans are being approved only for those borrowers with exceptional credit and meeting strict conditions.
California in particular is within 10 percent of peak prices in most major metros such as San Francisco Bay Area and several Southern California markets. The California markets benefit significantly with relatively high incomes (increasing affordability) compared to the rest of the nation and the high desirability to reside in the state.
Furthermore, the Bay Area real estate market benefited hugely from the influx of money coming in from international buyers during the rebound phase of the market. Those investors propped up the market, which created confidence for other buyers and the result was a nice healthy correction over that last 20 months. Most international buyers came in as cash buyers and they tend to be long term investors as California real estate is a great investment, providing excellent cash flow and long term equity growth. 
Home price trajectory in the East Bay market shows we should push past the peak by 2015. Prices next year will be on an upward trend, albeit at a slower pace than 2012-2013. What we've seen in the past two years is what I termed the "hyper correction" and that surge in pricing should start tapering off a bit.  
 (Click this link for NAR full story) 

To view all active homes in the East Bay, you can go to:
Kevin R Kieffer, Broker / Team Leader for The EastBayPro Team with offices in Danville & Walnut Creek and has team members serving the entire East Bay market

2 comments in this topic

  • Posted by Linda Driscoll
    Loved the properties in Danville how is the school system?
  • Posted by Kevin Kieffer
    The schools are exceptional with some of the highest ratings in the state. Kevin R Kieffer, Broker Associate with Keller Williams Realty

Want to Advertise on this Site?

Latest Blog Posts

Why Compass And Eastbaypro To Achieve Your Real Estate Goals

Compass is the only real estate brokerage brand that speaks to the next generation of luxury buyer exquisitely. This ‘next generation’ (of all ages) work in industries that have advanced far

Read More

The Dangers Of Overpricing In Diablo Valley

Compass ran an analysis on homes that are priced less than 2MM in Contra Costa County and throughout #DiabloValley area. Compass compared overpricing a home with those priced at fair market value.

Read More

The Winter Season

Winter is here you can feel the chill in the area coming from Pacific ocean off the bay. This week, especially today with the strong winds making a mess of all the leaves that everyone did their

Read More

Prop 5 Expected Inventory Impact

Proposition 5 qualified for the ballot this year with over 1 million signatures from registered voters. If this proposition passes it will enable homeowners who are 55+ to sell their existing

Read More